Global markets seeing lower offers for American PVC

08-Sep-11

Several major global markets have been seeing lower offers for American PVC recently, mainly attributed to globally thin buying interest towards fresh, long distance import cargoes, as per ChemOrbis. PVC buyers from China managed to purchase US origin cargoes with weekly decreases of US$20-30/ton on CFR Chinas basis this week. The overall demand for import materials, however, is considered to be soft, with traders complaining of a difficulty in deal conclusion these days. In Italy, offers for American PVC k64-65 cargoes for end-September/early-October delivery were reported almost US$20-25/ton below August levels, according to a trader. However, the current euro/USD parity rate at above 1.41 is holding the euro based prices on DDP Italy basis mostly steady compared to last month. US origin offers at the end of last month did not meet with much interest from Italian buyers who were scouting for some discounts for domestic cargoes. Italy may see further reductions in offers for US origins in the coming weeks due to slightly lower offers for this origin in the Egyptian and Turkish markets, especially if European producers concede to some discounts on their initial September prices, which were rolled over from August. After returning from Ramadan holidays, players in Turkey and Egypt also saw lower American PVC offers this week. In the Turkish market, September k67-68 and k70 offers for American PVC were reported US$20-40/ton lower on CFR Turkey basis as buying interest inside Turkey remains sluggish following the extended holidays. In the nearby Egyptian market, where US origin is the main import supply source, a converter was offered US PVC this week at a price which indicates US$10-45/ton decreases from the pre-holiday levels. A buyer who received this offer reported that he is not planning to make any fresh purchases at the moment as demand is almost non-existent following the holidays.